Investing.com - The U.S. dollar climbed against its Canadian counterpart on Monday, as declining oil prices weighed on demand for the commodity-related Canadian currency.
USD/CAD hit 1.3092 during early U.S. trade, the pair’s highest since March 17; the pair subsequently consolidated at 1.3061, advancing 0.43%.
The pair was likely to find support at 1.2941, the low of March 17 and a five-month low and resistance at 1.3134, the high of March 17.
The Canadian dollar weakened as oil prices moved back lower on Monday amid concerns over a supply glut after the U.S rig count rose for the first time since December.
Meanwhile, the greenback recovered from losses posted after the Federal Reserve said last week that it is likely to raise interest rates only twice this year – and not four times, as initially estimated.
Fed policymakers said the U.S. economy faces risks from an uncertain global economy, although moderate growth and "strong job gains" would allow it to tighten policy this year.
The loonie was lower against the euro, with EUR/CAD gaining 0.46% to 1.4722.